Social insurance debate begins

JAKARTA: The House of Representatives and the government, represented by ad interim coordinating minister for public welfare Malik Fadjar and Minister of Health Ashamed Sujudi, have started discussing the national social insurance system (SJSN) bill.

Malik Fadjar said the bill was intended to allow an increase in the number of social insurance participants and a greater variety in insurance schemes.

Under the bill, a non-profit, tax-exempt company would manage the insurance funds, with the shareholders consisting of the government, workers and employers.

The bill also provides that the government will pay the insurance premiums of low-income people out of the state budget.

However, existing insurance firms such as PT Askes, Jamsostek, Taspen and Asabri would continue their operations as usual.

"The SJSN will serve as an umbrella company," Malik Fadjar said. --Antara